These days, everyone is talking about all the things AI can do. Especially after a man in Florida used ChatGPT to sell his home without an agent and sold it in 5 days.
The truth is that while AI is incredibly powerful, there are still many things it is not quite ready for.
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Perhaps unsurprisingly, what home buyers and sellers still don’t fully understand is that AI isn’t ready to handle real estate agents’ jobs. That’s not to say it will never happen, just that it doesn’t exist yet and won’t exist in the near future.
Nevertheless, as agents, we need to educate prospects who mistakenly believe they can do it.
Real estate transactions are expensive, so home buyers and sellers want to save as much money as possible, but many don’t understand what we actually do behind the scenes and therefore don’t understand the value we bring to the transaction. Unfortunately, you can’t just tell them that relying on AI in real estate transactions is risky; you have to show them the evidence.
As both a real estate and AI expert, I feel uniquely qualified to teach you how to articulate this risk and demonstrate the value it brings to your transactions.
Using AI instead of a real estate agent can cause problems
So let’s unpack some scenarios where AI could derail real estate transactions. This can help persuade prospects who are considering using AI instead of hiring an experienced agent.
1. Misconceptions about comps and actual understanding of the market
AI can pull comps, but it cannot interpret why those comps were traded the way they were.
For example, let’s say two similar homes sell for $75,000.
The AI description is based on:
Area Bed/Bath Release date
But here’s what’s missing:
Some had fundamental concerns that were not covered in the MLS notes. Some engaged in off-market bidding wars driven by agent relationships. Some had drain backing and were avoided by buyers.
So while AI advice pricing appears to be “data-driven,” it is actually disconnected from reality as important information is overlooked.
Experienced agents don’t just read comps. They know the story behind it. This is often because they have done extensive research, either by talking to the listing agent or the buyer’s agent, viewing the property in person, or through other channels.
It’s not present in the prompt and the AI doesn’t even know it’s a factor.
2. Title Issues and Liens — Where Transactions Quietly Disappear
AI can explain what a lien is, but it cannot solve complex ownership situations. This is a complex web of legal documents that often needs to be searched across multiple platforms.
For example, a title search might display information such as:
Old open permit undisclosed lien boundary issue
AI’s advice is to contact the title company to resolve it before closing. It’s the direction, not the execution. Here’s what actually needs to happen:
Call the appropriate person at the title company (not a regular phone call) Escalate to the municipality Track down documents that are 10-15 years old Negotiate timelines with the buyer to keep the deal alive
If done incorrectly, closings can be delayed, buyers walk away from deals, and sellers start over with a stigmatized property. This is why relationships and persistence are more important than raw information.
3. Visit negotiations require a strategy, not a script.
Home inspections are where many viable deals fall through because they are a complex part of the transaction with countless variables involved.
So while an AI might analyze a home inspection and suggest general advice like “ask for repair credits” or “negotiate fairly,” it’s surface level and doesn’t actually provide actionable advice.
For example, if an inspection reveals a dilapidated roof, minor electrical issues, or borderline plumbing issues, real-world questions that an experienced agent could address but that AI can’t address could include:
What is the relationship between leverage and noise? Should we concede early or push back? Are buyers looking for a reason to do business again, or just for reassurance?
If one party relies on AI, the seller could unnecessarily make too many concessions, or the buyer could dig deep enough to negate a deal that could have been closed. However, with an experienced agent involved, the deal remains intact and the seller is protected in terms of price and delivery.
This requires not only reading reports, but also reading people and situations.
4. Local government and permit issues (invisible landmines)
AI won’t call the building department or handle the complexity of managing interactions with multiple humans, but agents can.
For example, you’ve probably been involved in a deal years ago where an addition was made, but you’re not sure if it was allowed or if the buyer’s lender flagged it.
AI advice is usually limited to “checking permissions with local authorities” but cannot advise on how to do so. Also, each municipality operates differently, records can be incomplete, and answers often depend on who you talk to and how you frame your question.
Sometimes it’s resolved in writing, sometimes it’s negotiated, and sometimes the deal needs to be completely restructured.
This is not a question of knowledge. This is a problem of navigation within an imperfect system managed by imperfect humans.
5. Triage if something goes wrong (because it always does)
This is definitely the biggest one. No deal ever goes according to plan. When things don’t go as planned, an experienced agent can usually find an effective solution quickly to save the day.
For example, if the valuation becomes low, the buyer’s financing becomes unstable, or the closing schedule is unexpectedly shortened, AI can outline several options, including:
Renegotiation Dispute Assessment Closing Extension
But I can’t do the following:
Call the lender to understand the real problem Get a feel if the buyer is still committed Coordinate all parties involved to find a solution that actually closes the deal
Without experienced coordination, easily resolved issues can cause deals to fall apart, but with the right agent, small fires can stay small and deals can be salvaged.
real difference
While AI excels at structured answers in predictable environments, real estate transactions are full of incomplete information, human emotion, imperfect systems, and timing pressures.
This is where specialized knowledge comes into play.
It’s not about knowing what to do when everything is perfect, it’s about knowing what’s next.
Who to call? What’s important and what’s just noise? When to push and when to pause? How to keep the deal going when it starts to fall apart.
This is where experienced agents shine and where AI fails.
Tatyana Zagorovsky specializes in helping people with damaged credit achieve their dreams of homeownership through her St. Louis-based Trio Realty Partners. Connect with her on LinkedIn and Instagram.
